}
1
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service and does not
accrued by officers,
pension safeguard.
its
attraction to
safeguard retirement benefits already
it would not be accepted by staff as a
Its contributory nature would also reduce
some staff, who would be reluctant to see
Moreover, the lead
any reduction in their take home pay.
time, say one to
two years, required for its establishment
will limit its effectiveness as a pension safeguard, because
it would by then be close to 1997.
12.
In the longer run and with the introduction of
compulsory retirement funds for the private sector,
Government may come under public pressure to do the same. If
we did So it would be for new appointees and would not in
fact be a pension safeguard for serving officers. This issue
may require separate consideration in future.
Hypothecated Pension Funds
13.
The proposal amounts to allowing officers to set
up their OWN pension funds by borrowing up to their maximum
accrued commuted pension gratuity from financial institutions
with their future pension entitlements as a lien. The funds
raised would then be managed by the financial institutions
and converted into a portfolio designed to achieve long term
capital appreciation in a mixture of foreign currencies.
An
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